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Mixing Assets, Liabilities and Basketball

Long rates are high and short rates are low and it is going to stay that way for some time in the view of Jim Reed, senior vice president of UMB Bank in Kansas City. During an asset-liability management seminar at the bank recently Reed said, "We've got to face what reality is and work our way through it."

The program in mid-March for client banks from Missouri and surrounding states was timed to coincide with the Big 12 basketball tournament in Kansas City's Sprint Center.

Short rates are artificially low due to the present special circumstances, Reed noted. The Fed has to make a decision to fight inflation or try to alleviate the credit crisis and Reed believes the central bank will opt ...

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